What’s Changing?

From 1 May 2026, the home battery rebate shifts to a tiered system meaning the rebate you receive depends on your battery’s usable capacity:

• Small batteries (0–14 kWh) → 100 % of the rebate rate
• Medium batteries (14–28 kWh) → ~60 % of the rebate rate
• Larger batteries (28–50 kWh) → ~15 % of the rebate rate

This structure applies to the way Small-scale Technology Certificates (STCs) are counted and directly influences the rebate value you get back.

Why It Matters

Under the current system (until 30 Apr 2026), rebates are calculated uniformly meaning larger batteries benefit proportionally. But from 1 May 2026:

• The rebate per kWh drops faster (the STC rate will decline every six months instead of once a year).
• Larger systems lose proportionally more support compared to smaller household batteries.

For example, a 42 kWh battery system will receive a much smaller rebate per usable kWh after the changes than before.

Timing Is Critical

If you’re planning a large-capacity battery mainly for backup power, heavy usage, or Virtual Power Plant (VPP) participation, installing before 1 May 2026 can secure a significantly higher rebate amount. After the changes take effect, the same system could cost thousands more because of reduced support.

Bottom Line

• The federal battery rebate isn’t ending, it’s being recalibrated.
• Support remains strongest for smaller household batteries.
• Larger systems still qualify, but at a lower rebate rate per kWh.

Now through April 2026 is the best window to lock in a larger battery rebate before the tiered system begins.